Hong Kong hopes to boost public confidence in digital banking by renaming the industry and replacing the term «virtual».
The Hong Kong Monetary Authority (HKMA) has issued a one-month consultation to collect views on a proposal to rename «virtual banks» to «licensed digital banks», according to an «SCMP» report citing deputy CEO Arthur Yuen. The move hopes to boost public confidence as the word ‘virtual' in Chinese can be defined as fictional.
«The name has a negative impact on virtual banks,» Yuen said. «This is also in line with the international trend, as Europe, Malaysia and Singapore have also adopted the term digital bank.»
Business Growth
The HKMA first issued eight virtual banking licenses in 2019. At the end of 2023, they collectively accumulated 2.2 million customers with HK$37 billion ($4.7 billion) in deposits and HK$19 billion in loans.
